Informs Annual Meeting 2017

MB48

INFORMS Houston – 2017

MB47

MB48

360F Mobile Commerce, Apps, and Services Sponsored: EBusiness Sponsored Session Chair: Keum Seok Kang, PhD, Florida International University, Miami, FL, 33199, United States, kskang@fiu.edu 1 - A Net Diffusion Model of Mobile Application: Considering Self- referencing, with in-category Dependency, and Drop-out Process Youngsok Bang, Chinese University of Hong Kong, bangyoungsok@baf.cuhk.edu.hk, Dong-Joo Lee, Kunsoo Han, Sang Won Kim Modeling the diffusion of mobile apps is practically important, as the mobile app market has become a significant economy. Furthermore, the diffusion process of mobile application has several distinctive features, which makes the modeling work theoretically meaningful. Considering distinctive features of mobile app diffusion—assimilation gap, self-referencing, and within-category dependency—, we develop a flexible diffusion model of mobile apps. Using the large-scale data, we evaluate the model fit of competing models across multiple apps. The analysis results suggest the appropriate diffusion model for a specific app type. 2 - Consumer Search, Producer Entry, and Product Variety: Theory and Evidence from a Digital Product Market Michael (Zhan) Shi, Arizona State University, Tempe, AZ, United States, zmshi@asu.edu, Raghu Santanam, Zhongju (John) Zhang Many digital goods markets are characterized by large product space, functionality and design heterogeneity, and low cost of entry for producers. We examine the influence of incumbent digital products distribution on consumer search, entry of new products into different niche locations and market performance. The producers in the market strategically choose to enter different niche locations according to their capability. We analyze the entry pattern and sales distribution that emerge endogenously as part of the equilibrium market structure, and how product variety changes the equilibrium. 3 - A Dynamic Location Based Advertisement Delivery Problem Keumseok Kang, Assistant Professor, Florida International University, 11200 S.W. 8th Street, Miami, FL, 33199, United States, kskang@fiu.edu Location Based Advertisement (LBA) enables physical stores to attract customers more effectively than ever by sending location-aware advertisements through customers’ mobile devices. In spite of increasing attention in practice, LBA has attracted little attention in the literature. We study a dynamic advertisement delivery problem in a push-based LBA from the perspective of an intermediary advertiser that is sending advertisements to prospective customers on behalf of stores. 4 - Exploring Mobile Technologies in the Hospitality Industry: The Antecedents and Differential Impacts of using Mobile Devices on Hotel Employees’ Outcomes Minwoo Lee, Assistant Professor, Conrad N. Hilton College of Hotel & Restaurant Management, University of Houston, Houston, TX, United States, mlee37@Central.uh.edu This study attempts to identify smart-computing functions of Smartphone use at the workplace and to examine the impact of using smart-computing functions on employees’ managerial roles and overall performance improvement in the hospitality industry. Findings of this study indicate that user’s Smartphone dependence and perceived critical mass lead to using smart-computing functions. Using smart-computing functions is positively associated with Mintzberg’s three managerial role performance, resulting in overall performance improvement. Discussions and suggestions for future research are provided. 5 - Air Matters: the Impact of Searching Air Quality Information Sang Pil Han, Arizona State University, BA 301D, Tempe, AZ, 85287, United States, sangpil.han@asu.edu, Ki-Kwang Lee, Youngki Park, Hyuncheol Kim More than 90% of the world’s population lives in areas where air pollution exceeds safety thresholds, according to the World Health Organization. We investigate whether meaningful use of information technologies can help individuals mitigate the risk of environmental hazards such as air pollution by having immediate access to information about ambient air quality. We find that information search for air quality index such as Particulate Matter 10 (PM 10) is most helpful to individuals when the air quality condition is not evident to naked eyes without checking the exact PM10 level online.

361A Managerial Judgment and Decisions Sponsored: Behavioral Operations Management Sponsored Session Chair: Brent Moritz, Penn State University, University Park, PA, 16802, United States, bmoritz@psu.edu 1 - How To Benefit from Supplier-retailer Negotiations: An Example of the Buyback Contract Michael Becker-Peth, RSM.- Rotterdam School of Management, AlbertuBurgemeester Oudlaan 50s-Magnus-Platz, Erasmus A standard way to test newsvendor contracts in the lab is to have the supplier propose a contract and the retailer place an order to maximize the expected profit. We show that when this process is used with human decision makers, coordinating contracts do no emerge. Human retailers place sub-optimal order quantities and exhibit inequity averse behavior, i.e., reject unfair offers. We show that allowing the player to negotiate can improve the profits of both players when negotiation is successful, especially when parties negotiate over the order quantity in addition to the contract parameters. 2 - Integrating Managerial Insight and Optimal Algorithms Blair Flicker, University of Texas-Dallas, 800 W. Campbell Road, Mailstop AD23, Richardson, TX, 75208, United States, bflicker@utdallas.edu A nearly universal finding in behavioral operations management is that human decision-makers suffer from biases that erode firm profits. But humans can gather information that is not available to standard optimization routines (macroeconomic developments, local trends, consumer sentiment). If humans have superior information, their decisions might actually be “superoptimal.” Human newsvendors endowed with superior demand information fail to improve profitability when placing orders directly due to poor decision-making. However, a novel approach to automatically convert subjects’ demand forecasts into insight- John Aloysius, University of Arkansas, Supply Chain Management Department, Wcob 204, Fayetteville, AR, 72701, United States, aloysius@uark.edu, Marat Davletshin, Siqi Ma, Enno Siemsen Managers often forecast demand for different distribution channels (e.g., online vs in-store), geographical regions, and store formats. There may be different systematic variation between these different demand sources (e.g., growing online demand and shrinking in-store demand). We experimentally study characteristics of situations where aggregated forecasting is advantageous over disaggregated forecasting. 4 - Impact of Capacity and Fixed Costs on Routine Sourcing Decisions under Demand and Supply Uncertainty: An Experimental Investigation Arunachalam Narayanan, University of Houston, Dept of Decision and Information Sciences, Mail Stop 6021, University of Houston, Houston, TX, 77204, United States, anarayanan@bauer.uh.edu, Nickolas K. Freeman, Brent Moritz We consider a procurement manager who sources raw materials from two suppliers. One of the supplier is perfectly reliable and expensive, while the other is cheaper but unreliable, failing to deliver with some positive probability. The buying firm has limited capacity to process the order and may be subjected to a fixed costs, like labor and utilities, regardless of whether they produce or not in that period. We first show theoretically that the capacity is an influencing factor when making sourcing decisions, forcing the manager to choose a more reliable supplier, while the sunk cost has no effect on these decisions. We evaluate these theoretical findings in an experimental setting. University Rotterdam, Rotterdam, 3062, Netherlands, michael.becker-peth@uni-koeln.de, Elena Katok, Ulrich Thonemann informed order quantities does substantially improve profitability. 3 - Judgment Forecasting for Multiple Demand Sources

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